XRP has rebounded from the recent market pullback and is attempting to confirm the $3.00 support level. However, an analyst indicated that the cryptocurrency may face the risk of retesting the lower range again before bullish momentum continues.

XRP daily closing price trend is key

XRP has regained key support levels, and the cryptocurrency market is stabilizing from this week's slump. Over the past week, the altcoin has been consolidating, hovering between $2.85 and $3.10.

The cryptocurrency retested the lower range and held the lower limit as support during recent market fluctuations. Currently, the price has surged 7% from Monday's low to the $3.08 area, before pulling back to the $3.00 mark.

On Wednesday, analyst Ali Martinez pointed out that XRP has broken through the local resistance near $3.10 for the third time, which may signal a new round of corrections similar to previous attempts at the lower range.

If altcoins fail to hold the current levels as support and lose the mid-range area, their prices could drop to $2.83, with the risk of breaking below the local range and further corrections.

Conversely, if bullish momentum continues and the cryptocurrency breaks through key resistance levels, its price could rebound to the highs of August, between $3.20 and $3.40.

Similarly, analyst Cryptoinsightuk pointed out that XRP's daily closing price is positive and added, 'The RSI crossover is bullish, and we haven't seen any structural change during this pullback.'

Nevertheless, he stated that cryptocurrencies need to maintain their momentum and continue to keep prices and trading volumes rising the next day. This market observer asserted that if the daily closing price breaks through the $3.14 area, it will lay the foundation for a rebound to the $3.40 resistance level in the coming weeks.

Is a rebound like that of 2017 coming?

After rising to the latest historical high (ATH) of $3.65 in July, this altcoin has been consolidating within a bullish triangle, with prices compressing between the resistance and support levels of this pattern.

Analyst GalaxyBTC also noted that XRP has been fluctuating between two parallel levels, mirroring its 2017 trend. Previously, the cryptocurrency hovered between previous historical highs and breakout levels, with the breakout levels turning into support.

After a period of consolidation, the cryptocurrency broke through this range and rebounded significantly to the historical high of 2018. This time, XRP transformed the $1.70 area into a support level last November and has been consolidating between this level and previous historical highs for the past eight months, which may indicate that the upward trend is not over.

If history repeats itself, once the altcoin breaks through the previous highest resistance and turns it into support, a massive breakout will occur.

Additionally, the analyst emphasized a key level for the XRP/BTC trading pair and explained that the $0.00003014 area has been a resistance level in the XRP/BTC chart for the past six years.

As the XRP/BTC pair continues to approach this resistance level, market observers believe 'the timing is perfect, as a breakout will allow us to discover the price against the dollar well.'

As of the time of writing, XRP is trading at $3.02, up 3.3% for the week.